Construction firms added 45,000 jobs in April and 280,000 over 12 months, as the sector’s unemployment rate fell to a nine-year April low of 7.5 percent, according to an analysis by the Associated General Contractors of America. Association officials noted that growth has been erratic even though the industry has been expanding.
“Construction employment resumed strong growth in April after slipping in March and is now growing at more than double the growth rate for total nonfarm employment,” said Ken Simonson, the association’s chief economist. “Nevertheless, job growth remains spotty with the nonresidential building sector losing jobs even as other construction sectors expanded.”
Construction employment totaled 6,384,000 in April, compared to 6,338,000 in March and 6,103,000 in April 2014. Residential building and specialty trade contractors added 23,600 jobs (1 percent) since March and 153,300 jobs (6.7 percent) over 12 months. Within the residential sector residential building contractors added only 28,000 jobs for the month while residential specialty trade contractors added 20,800 jobs compared to March.
Nonresidential contractors -- including building, specialty trade, and heavy and civil engineering construction firms – hired a net of 20,800 workers for the month and 126,100 since April 2014. As with the residential sector, the nonresidential employment sector varied by segment. Nonresidential specialty trade contractors added 20,200 jobs for the month while heavy and civil engineering contractors added 8,400 jobs since March. But nonresidential building construction employment declined by 7,800 for the month and is up only 16,600 for the year.
Simonson added that the number of unemployed construction workers, 652,000, is at the lowest level since 2001, and cautioned that reports of construction worker shortages are likely to grow during the coming months.”
AGC officials urged Congress and the Obama Administration to act.
“The last time the sector’s unemployment level was this low construction firms were scrambling to find enough workers,” said Stephen Sandherr, the association’s CEO. “While the labor situation isn’t as dire as it was back in 2006, Washington must act soon before more firms struggle to find enough workers to meet demand.”
